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in Bengal so perfectly destructive a system。 The plan of their

government; however; has had exactly the same tendency。 It has

not been uncommon; I am well assured; for the chief; that is; the

first clerk of a factory; to order a peasant to plough up a rich

field of poppies and sow it with rice or some other grain。 The

pretence was; to prevent a scarcity of provisions; but the real

reason; to give the chief an opportunity of selling at a better

price a large quantity of opium; which he happened then to have

upon hand。 Upon other occasions the order has been reversed; and

a rich field of rice or other grain has been ploughed up; in

order to make room for a plantation of poppies; when the chief

foresaw that extraordinary profit was likely to be made by opium。

The servants of the company have upon several occasions attempted

to establish in their own favour the monopoly of some of the most

important branches; not only of the foreign; but of the inland

trade of the country。 Had they been allowed to go on; it is

impossible that they should not at some time or another have

attempted to restrain the production of the particular articles

of which they had thus usurped the monopoly; not only to the

quantity which they themselves could purchase; but to that which

they could expect to sell with such a profit as they might think

sufficient。 In the course of the century or two; the policy of

the English company would in this manner have probably proved as

completely destructive as that of the Dutch。

     Nothing; however; can be more directly contrary to the real

interest of those companies; considered as the sovereigns of the

countries which they have conquered; than this destructive plan。

In almost all countries the revenue of the sovereign is drawn

from that of the people。 The greater the revenue of the people;

therefore; the greater the annual produce of their land and

labour; the more they can afford to the sovereign。 It is his

interest; therefore; to increase as much as possible that annual

produce。 But if this is the interest of every sovereign; it is

peculiarly so of one whose revenue; like that of the sovereign of

Bengal; arises chiefly from a land…rent。 That rent must

necessarily be in proportion to the quantity and value of the

produce; and both the one and the other must depend upon the

extent of the market。 The quantity will always be suited with

more or less exactness to the consumption of those who can afford

to pay for it; and the price which they will pay will always be

in proportion to the eagerness of their competition。 It is the

interest of such a sovereign; therefore; to open the most

extensive market for the produce of his country; to allow the

most perfect freedom of commerce; in order to increase as much as

possible the number and the competition of buyers; and upon this

account to abolish; not only all monopolies; but all restraints

upon the transportation of the home produce from one part of the

country to another; upon its exportation to foreign countries; or

upon the importation of goods of any kind for which it can be

exchanged。 It is in this manner most likely to increase both the

quantity and value of that produce; and consequently of his own

share of it; or of his own revenue。

     But a company of merchants are; it seems; incapable of

considering themselves as sovereigns; even after they have become

such。 Trade; or buying in order to sell again; they still

consider as their principal business; and by a strange absurdity

regard the character of the sovereign as but an appendix to that

of the merchant; as something which ought to be made subservient

to it; or by means of which they may be enabled to buy cheaper in

India; and thereby to sell with a better profit in Europe。 They

endeavour for this purpose to keep out as much as possible all

competitors from the market of the countries which are subject to

their government; and consequently to reduce; at least; some part

of the surplus produce of those countries to what is barely

sufficient for supplying their own demand; or to what they can

expect to sell in Europe with such a profit as they may think

reasonable。 Their mercantile habits draw them in this manner;

almost necessarily; though perhaps insensibly; to prefer upon all

ordinary occasions the little and transitory profit of the

monopolist to the great and permanent revenue of the sovereign;

and would gradually lead them to treat the countries subject to

their government nearly as the Dutch treat the Moluceas。 It is

the interest of the East India Company; considered as sovereigns;

that the European goods which are carried to their Indian

dominions should be sold there as cheap as possible; and that the

Indian goods which are brought from thence should bring there as

good a price; or should be sold there as dear as possible。 But

the reverse of this is their interest as merchants。 As

sovereigns; their interest is exactly the same with that of the

country which they govern。 As merchants their interest is

directly opposite to that interest。

     But if the genius of such a government; even as to what

concerns its direction in Europe; is in this manner essentially

and perhaps incurably faulty; that of its administration in India

is still more so。 That administration is necessarily composed of

a council of merchants; a profession no doubt extremely

respectable; but which in no country in the world carries along

with it that sort of authority which naturally overawes the

people; and without force commands their willing obedience。 Such

a council can command obedience only by the military force with

which they are accompanied; and their government is therefore

necessarily military and despotical。 Their proper business;

however; is that of merchants。 It is to sell; upon their masters'

account; the European goods consigned to them; and to buy in

return Indian goods for the European market。 It is to sell the

one as dear and to buy the other as cheap as possible; and

consequently to exclude as much as possible all rivals from the

particular market where they keep their shop。 The genius of the

administration therefore; so far as concerns the trade of the

company; is the same as that of the direction。 It tends to make

government subservient to the interest of monopoly; and

consequently to stunt the natural growth of some parts at least

of the surplus produce of the country to what is barely

sufficient for answering the demand of the company。

     All the members of the administration; besides; trade more

or less upon their own account; and it is in vain to prohibit

them from doing so。 Nothing can be more completely foolish than

to expect that the clerks of a great counting…house at ten

thousand miles distance; and consequently almost quite out of

sight; should; upon a simple order from their masters; give up at

once doing any sort of business upon their own account; abandon

for ever all hopes of making a fortune; of which they have the

means in their hands; and content themselves with the moderate

salaries which those masters allow them; and which; moderate as

they are; can seldom be augmented; being commonly as large as the

real profits of the company trade can afford。 In such

circumstances; to prohibit the servants of the company from

trading upon their own account can have scarce any other effect

than to enable the superior servants; under pretence of executing

their masters' order; to oppress such of the inferior ones as

have had the misfortune to fall under their displeasure。 The

servants naturally endeavour to establish the same monopoly in

favour of their own private trade as of the public trade of the

company。 If they are suffered to act as they could wish; they

will establish this monopoly openly and directly; by fairly

prohibiting all other people from trading in the articles in

which they choose to deal; and this; perhaps; is the best and

least oppressive way of establishing it。 But if by an order from

Europe they are prohibited from doing this; they will;

notwithstanding; endeavour to establish a monopoly of the same

kind; secretly and indirectly; in a way that is much more

destructive to the country。 They will employ the whole authority

of government; and pervert the administration of justice; in

order to harass and ruin those who interfere with them in any

branch of commerce; which by means of agents; either concealed;

or at least not publicly avowed; they may choose to carry on。 But

the private trade of the servants will naturally extend to a much

greater variety of articles than the public trade of the company。

The public trade of the company extends no further than the trade

with Europe; and comprehends a part only of the foreign trade of

the country。 But the private trade of the servants may extend to

all the different branches both of its inland and foreign trade。

The monopoly of the company can tend only to stunt the natural

growth of that part of the surplus produce which; in the case of

a free trade; would be exported to Europe。

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